Monday, May 20, 2013

Video Search: Timeline From Pad Preparation To First Royalties

A reader is looking for a video timeline of the oil patch process, from pad preparation to first royalties.

I've done a quick search, unable to find anything.

If anyone can locate that video, please let us know.

Thank you.


Timeline from applying for permit to first royalty. See comment below. I moved that information up here for easier searching. I also provided a link to this timeline at "FAQ" -- question #28.

An overall average would go something like this:
  • "Permit to drill" to building of drill pad: 1 to 3 months. 
  • build the site: 2 - 2 weeks
  • rig arrives on site: 1 - 2 months later
  • time to reach total depth: 1 month for each well on site
  • wait for fracking after last well is drilled: 4 - 6 weeks
  • each well to be fracked: 5 - 10 days
  • production begins
  • first royalty check: 100 - 150 days after production begins
  • first royalty check delays due to title issues
Total: assume up to a year. Anything shorter than that -- wonderful.

On multi-well pads, it is my understanding that they won't frack the wells until the last well is drilled. I also see "boiler-plate" requests to delay drilling 90 days early in the process.


  1. I have not seen the video referred to, but I believe the best answer is that a time-line is
    extremely difficult to predict. There are too many variables.

    An overall average would go something like this: "Permit to drill" to building of
    drill pad--1 to 3 months.
    2 to 3 weeks to build the site. Drill rig on
    the site 1 to 2 months later.
    Figure one month to drill each well on this site. Then after drilling is completed another
    4 to 6 weeks before fracking begins. Figure
    5 to 10 days for each well to be fracked.
    After production begins it will likely be 100
    to 150 days before a royalty check is received ( assuming all titles are clear, etc.)
    This all adds up to 9 to 11 months for a single well site to a year or more for multi-well sites.
    There are rare cases when this time-line is some shorter but also many cases where it is
    much longer. If it is held to the above average
    you are very fortunate.

    1. Thank you. Yes, I think folks are surprised that it is "easily" up to a year before they see their first check, but once the process starts (with that first check), it should go smoothly after that.

      Thank you very much for taking time to write.